7 Useful Tips for ITR Filers
PrintListen to this Article
So! I guess most of us, specially who are not professionals, would be busy in searching over net the available deductions and instructions to file ITRs. Apart from a duty to contribute to the development of nation in form of taxes and filing ITRs, it is also necessary to claim refund of taxes, show as valid proof of income for availing loans and peace of mind (Of course! Who wants to receive even a simple Hello! Notice from IT Department).
So as to minimize your hardship to a little following are some useful tips which can help you to sail through the river of current Financial Year of return filing:
1. Whether to File ITR or Not: If your income exceeds basic exemption limit (i.e. Rs. 2,50,000) then you must file ITR to avoid any surprise. If your income is more than Rs. 5,00,000 then it is mandatory to e file the ITR. If TDS has been deducted and you think you deserve refund of that then you must file ITR to claim the refund. Even if no tax payable or no refund is due you should continue the holy ritual to file ITR every year reporting your correct income so that Kripa Bani Rahe!
2. More Time to File ITR: For all the assessee having salary income, Income from house property, Interest Income or business income where accounts are not required to get audited due date for filing ITR has been extended to 31st Aug, 2015. Hurray! One month more for mind battle!
3. What’s New this year: This year IT department has launched new service of e verification of ITR through OTP (Like we do while making online payments) which can be accessed by internet banking, aadhaar number, ATM & E mail. So now we don’t need to send the ITR V acknowledgement (Do Not Disturb Letter!) to IT Department, Bangalore.
4. Correct Form of ITR: Categorize your sources of income. Based on the source of income you have to choose correct form for yourself. For example ITR1 is for salaried persons along with interest income and ITR4 is for Proprietary Business or Profession. Different forms for different category of incomes.
5. Paper Work: Now no paper has to be sent to IT Department to file ITR. You just need to have Form 16 of applicable FY with you to file tax return, if TDS has been deducted on your income. Hey! But if you couldn’t E verify your online return then same as you did in the last year, you have to send ITR V to IT Department Bangalore.
6. Our Favorite Part! Deductions: Obviously we all want to save tax, therefore we have been given so many beautiful sections under boring IT Act. There are many sections under it, some of them are :
- Deduction under section 80C, 80CCC & 80CCD(1) is available upto Rs. 1,50,000. Under this section you get deduction for amount paid for PF, annuity plans, LIC, other insurance, pension fund and other annuity linked approved investments.
- Deduction u/s 80TTA is for interest on deposits for FY upto Rs. 10,000.
- Preventive health checkup expenditure of spouse/self/parents is allowed u/s 80D, even in cash upto 5,000/- and upto 15,000/- for medical insurance premium of self, spouse & children.
- You can claim deduction of Interest paid on Loan for Higher Education u/s 80E for yourself, spouse, children or students whom assessee is legal guardian.
- If you don’t receive HRA doesn’t mean you cannot claim deduction for house rent paid. Though the quantum of relief is limited but still it is there. Under section 80GG you get standard deduction of Rs. 2000 per month for house rent paid.
7. The Cherry on the shake: Apart from deductions under chapter VIA we do also have rebate of tax upto Rs. 2,000, If gross total income after deduction is upto Rs. 5,00,000.
Happy Filing. :)
Vikas Pathre
+91-9555413805
vikas.pathre1990@gmail.com
Note: Above given information is for educational purpose only. Consulting a professional is always a better idea.
Category : Income Tax | Comments : 0 | Hits : 1158
Income Tax Alert - Here Are 5 High-Value Transactions That May Come Under Scrutiny. Large Cash Deposits: Any cash deposit exceeding Rs 10 lakh in a financial year across savings accounts draws the attention of the income tax department. Even if deposits are spread across multiple accounts, the cumulative amount beyond the threshold triggers scrutiny. Fixed Deposits: Surpassing the Rs 10-lakh limit in fixed deposits within a financial year prompts inquiries regarding the source of f...
Delhi Court Sentences Woman to 6 months Jail for not filing the return of income (ITR) discussed. Accordingly, the accused is held guilty of not filing the return of income for the assessment year 2014-15 under Section 276CC of The Act. Accordingly, the accused is convicted for an offence punishable under Section 276CC of the Act," the court said in the judgement. "The convict is awarded a sentence of simple imprisonment for six months with a fine of Rs 5,000 and in default to unde...
Corporates, Non-corporates or government department all are procuring major part of services or goods from the MSMEs. There are provision under the Micro, Small, and Medium Enterprises Development (MSMED) Act, to ensure that businesses make payments to MSMEs within a specified time frame, and failure to which can impact the deduction claims for such payments. To facilitate timely payments to micro, small, and medium enterprises (MSMEs) and address the challenges faced by these businesses in rec...
In the Income tax act, the words “Turnover”, “Gross receipts” and Sales are used at many places. In the common business parlance, the terms sales and turnover are used interchangeably. However, as per Income Tax law, guidelines are available on the question of what constitutes turnover. Understanding the concepts of these words is necessary for the purpose of the tax audit. An audit is mandatory for corporate assessees, irrespective of the amount of turnover. In ...
Very Important Income Tax Update regarding Micro and Small Enterprises Section 43B-any amount remains unpaid on year end to creditors, being micro/small entity, beyond 45 days or less, as agreed or 15 days if no agmt, shall be added to taxable Income resulting in huge additional tax liability. Keeping such creditors unpaid is risky. If payment for purchases made from *Micro and Small units* remains outstanding on 31st March, there may be huge tax liability. Therefore...
Comments